First time homebuyers beware of Home Inspection…
Have you ever watched Muhammad Ali fight. We all know he is one of the greatest fighters in the world. His unique boxing style and over expressed confidence made him a global icon on the 60s. Some say no one else would ever be like him and others say he was just another overrated boxer. But something can’t be argued is that fact he had a brutal punch. One that if landed precisely can end a fight in the blink of an eye. On July 9 I experience a brutal home inspection one that could’ve ended the real estate sale in a blink of an eye. It couldve shattered dreams and forfeit buyers escrow deposit.
The home must of been inhabitable with an order for demolition right?. Wrong ! You couldn’t be farther from the truth.
If you have been in the market for Miami Foreclosure you’ve noticed most foreclosure homes need repairs. Some need new bathrooms others need new kitchen and most need both. According to a recent survey the average repair cost of foreclosure range from 8500 to 15000 dollars.
What was the repaired estimated that almost prevented the buyer from buying?
The Repaired estimate was for a whooping $250 dollars. Yikes!!! Isn’t that a lot of Money?
It wasn’t an ordinary inspection the buyer qualified and applied for the city program called NSP. The OCED ( office of community and Economic development) administers federal and state funding that supports the development of viable neighborhoods. Before the city grants this money it needs to send city inspector to assure the property is habitable the inspection is called (HQS).
I meant inspector on the home and I did mention that this must have been the best foreclosure home I ever seen. It was in great condition bathrooms, kitchen, appliances and roof were all in standard condition. He quickly took out this form and began his inspection. After 30 minutes and surprised outcome he noted the failed inspection. He gave me his outline that consists of painting wall, fixing valves, smoke detectors ,air filter, G.I.F system for bathroom and kitchen, and light fixture.
Starring with disleif , shocked and barely able to speak i ask:
“ Mr. inspector these are items that can be done after the closing takes place. Why would buyer fix any of these items before closing? Shouldnt we be more concern on major expenses such as roof, appliances, electric, plumbing, A/C, and windows?
“Homes needs to pass inspection and it hasn’t. The repairs must be done prior to closing or else city wont fund. If buyer needs to repair before closing that’s what buyer needs to do. Please call my office and reschedule when repairs have been made.”
Inspector was called 2 days later after buyer repaired all items and we received a pass inspection. Thankfully we were able to recover from what could’ve been a brutal inspection. If you are a first time home buyer first look into the NSP (click here for NSP package)and second be advise some repairs might be needed to the home that must be done before closing. Since this expense is not a lending requirement seller is not obligated to be responsible for it.
Looking for a Foreclosure home in Miami ? Would you like more information on the NSP program? Dont hesitate and start your home search today!! To contact us please call 305 726-6229 or email: Mdelgado@globalmarketrealty.com
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3 Questions to ask before you negotiate.
Being a big dresser I love to wear business suits, I am a strong believer of first impression are the best impression. But I must say I don’t wear suits just to make an impression but because I enjoy wearing them. I can take hours feeling the fabric, enjoying the patterns and choosing the right color. Because of the amount of time I invested in learning and appreciate a good suit I also learned the true value of a suit. It was on a sunny weekend while I was driving home from having breakfast I pulled over to a garage sale. There I saw what seemed to be a Giorgio Armani, pinstripe, cashmere suit for a 100 dollars my heart skip a beat. Excitement filled my heart, similar to what an 8 year old boy would feel when going to his favorite Movie.
I soon began to doubt the price seemed to be a giveaway. It’s too good to be true! Something is wrong with it! I stared and analyze every inch of fabric like scientists will study a cell thru a microscope.
You might have experience that with a foreclosure home. You went from excitement to a doubtful heart because it was too good to be true. You stared for minutes and began to look for hiding problems. In a span of 15 minutes you inspected the bathrooms, kitchen, and water pressure couldn’t find nothing wrong. As you finished your inspection you began to think of a good offer. You are a bargain shopper after all it’s the reason why you searched for a foreclosure home. You told yourself never to offer the asking price because everything is negotiable. This is true but it is not apply to everything and at every situation. You must look beyond that statement and look to answer these questions before you decide to make an offer?
IF the property has been in the market for more than 30 days you have a higher chance of negotiating than a home that just got listed. The more days it goes in the market the higher the chance of you negotiating.
You might think this is a common question but many buyers overlook it. It is important to know the recent sales in the neighborhood this will determine if the asking price is justified.
This is a very important question. Take a look at homes that are pending sale in the area. Research how many days it took for them to go under contract. If homes in the area go under contract in less than 15 days don’t hold your breath to negotiate.
3.5 How many offers did other homes in the area received?
Theres no way of knowing unless if listing realtor discloses it. Important to know if there’s any competition this will be the determine factor. It’s the simple economic law of supply and demand. Real estate is local by nature you shouldn’t generalize a local neighborhood with national statistics. IF you know how many offers other homes received you will have an idea of many offers this home will received. The same buyers that didn’t get their contracts accepted are the same buyers who are going to make an offer on any home in the same area.
Asking these questions first will help you determine whether to offer asking price or try to negotiate. IF you have placed 4 offers on four different homes and are still looking consider calling us for insider tips. Buying a home can be an exhilarating experience but it also can be an overwhelming one. As I take time and pleasure in learning more about suits you should learn more about the real estate market. It shouldn’t be another job but another journey. Call us today if you feel lost and need extra help in finding your perfect home. Don’t try to hard to negotiate nickels and dime while you’re saving a dollar.
P.s I didnt buy the Georgio Armani suit someone else did.
Looking for a Foreclosure home in Miami ? Would you like more information on your desired neighborhood? Dont hesitate and start your home search today!! To contact us please call 305 726-6229 or email: Mdelgado@globalmarketrealty.com. The city of Miami is a great place to live and is served by the Dade county School District.
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